VANCOUVER, BC, Feb. 14,
2023 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE:35D) announces the completion of flotation tests on
variability samples and a master composite ("Master Composite" or
"MC") prepared from drill core obtained from its 100% owned
Wicheeda Rare Earth Element (REE) deposit located in British Columbia, Canada.
John Goode, Defense Metals'
metallurgical advisor, stated:
"Flotation tests on variability samples from
the dominant lithological unit of the Wicheeda REE deposit gave an
average of 81% recovery to a concentrate assaying 45% rare earth
oxide. Wicheeda is one of the few rare earth deposits under
development from which a high-grade mineral flotation concentrate
can be produced at recovery rates similar to those obtained by
current rare earth producers. High-grade concentrates at high
recoveries are a critical requirement for positive production
economics. These successful flotation results help to
position Defense Metals' Wicheeda deposit as one of the best in
North America."
Defense Metals completed flotation tests on variability samples
that are representative of the three key REE-bearing lithologies in
the Wicheeda deposit: 1) the higher-grade dolomite carbonatite
("DC") which makes up 73% of the deposit, 2) the xenolithic
carbonatite ("XE") that represents 24%; and 3) the syenite ("SYN").
The primary rare earths minerals are monazite, bastnäsite and
synchysite/parisite. Figure 1 shows the mine plan as presented in
the Independent Preliminary Economic Assessment issued in
20221.
Figure 1. Wicheeda REE Deposit Lithologies
During Mine Life
Key Highlights:
- Table 1 results show that if the flotation plant is fed DC
material at an average grade of 3.3% Total Rare Earth Oxide
("TREO") and is operated to produce a flotation concentrate
containing 45% TREO, an average 81% recovery will be
observed. If 50% TREO were targeted, recovery would be
expected to be 77%. The DC mineralized material will be essentially
the only lithology fed to the flotation plant in the first eight
years as shown in Figure 1.
Table 1: Recovery rates at concentrates of
specified grades - DC samples
Note to Table 1: DC
Comp is a blend of all DC variability samples.
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- If the flotation plant is fed DC material mixed with other
lithological types, as planned for later in the mine life,
recoveries at different target concentrate grades will be as shown
in Table 2. Of the four blends tested, when producing a 40%
TREO flotation concentrate the recovery rate averaged 80% with
higher recoveries when the DC content was higher.
Table 2: Recovery rates at concentrates of
specified grades - DC blends
Notes to Table 2:
DC-XE2 and DC-XE3 are 1:2 and 2:1 blends of DC and XE Comp,
respectively. DC-SYN2 is 2:1 blend of DC Comp and SYN2.
MC is a blend of DC (73.4%), XE (22.5%), and SYN (3.8%).
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- Table 3 shows the testwork results for the variability samples
comprising pure XE and SYN lithologies. The flotation plant
is expected to only see such lithologies when they are blended with
DC. However, the data show that if the lower grade XE and SYN
material are processed alone, at a target flotation concentrate
grade of 40% TREO, the average recovery rate will be 59%.
Table 3: Recovery rates at concentrates of
specified grades - SYN and XE samples
Notes to Table 3: SYN
Comp and XE Comp are composites of respective variability samples.
DC01 was mis-identified as being DC, but assays and mineralogy
showed it to be XE and it was treated as such. N/A indicates
insufficient data for meaningful average.
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As noted above, in the first 8 years of the mine life, over 90%
of the flotation plant feed will be DC material, with higher rare
earth grade, with the later years being mostly DC and XE material
at relatively lower grades (see Figure 1).
The grade-recovery-concentrate data provided above will support
the upcoming preliminary feasibility study (PFS) and allow the
development of an updated and enhanced mine plan incorporating
drilling completed following the PEA that identifies lithology and
feed grades to arrive at estimates of the concentrate and REO
production rates in each year.
Methodology and QA/QC
Defense Metals prepared 17 variability samples covering
different lithologies, areas of the deposit, and head grades using
drill core material. The average mass of each sample was 31 kg,
with the Total Rare Earth Oxide ("TREO") assays ranging from
1.07% to 4.52% with an average of 2.34% TREO. Drill core
material was also used to make a 260 kg Master Composite sample
containing each of the three lithologies in their respective
life-of-mine proportions. The MC sample had a head grade
assay of 2.49% TREO.
All variability samples and the MC sample were shipped to SGS,
Lakefield, Ontario where they were
checked, crushed, and composited. A total of 87 flotation
tests were completed to investigate the impact of collector type
and dosage, depressant type and dosage, pulp temperature, pulp
density, pulp pH, and flotation feed size.
Bulk flotation and other operations continue at SGS in order to
prepare concentrate samples for continuing hydrometallurgical test
work and planned hydrometallurgical pilot plant testing.
Feed samples were analyzed by Inductively coupled plasma mass
spectrometry (ICP-MS) and flotation products were analyzed by SGS
using wavelength dispersive X-ray fluorescence (WD-XRF) following
lithium borate fusion of the sample. The SGS analyses included a
quality assurance / quality control (QA/QC) program including the
insertion of rare earth element standard and blank samples.
Defense Metals detected no significant QA/QC issues during
review of the data. Defense Metals is not aware of any
sampling, recovery or other factors that could materially affect
the accuracy or reliability of the data referred to herein. SGS
Lakefield is an ISO/IEC 17025 and
ISO9001:2015 accredited laboratory. SGS is independent of Defense
Metals Corp.
Qualified Person
The scientific and technical information contained in this news
release, as it relates to the Wicheeda Rare Earth Element Project,
has been reviewed and approved by John
Goode, P. Eng., who is a Qualified Person as defined by
National Instrument 43-101 and has provided the technical
information relating to metallurgy in this news
release. Kristopher J. Raffle, P.Geo. (BC), a director
of the Company, is the Qualified Person as defined in National
Instrument 43-101 for the information relating to resources in this
news release.
About the Wicheeda REE
Project
Defense Metals 100% owned, 4,262-hectare (~10,532-acre) Wicheeda
REE property is located approximately 80 km northeast of the city
of Prince George, British
Columbia; population 77,000. The Wicheeda REE Project is
readily accessible by all-weather gravel roads and is near
infrastructure, including hydro power transmission lines and gas
pipelines. The nearby Canadian National Railway and major highways
allow easy access to the port facilities at Prince Rupert, the closest major North
American port to Asia.
The 2021 Wicheeda REE Project Preliminary Economic Assessment
technical report ("PEA") outlined a robust after-tax net present
value (NPV@8%) of $517 million and an
18% IRR1. This PEA contemplated an
open pit mining operation with a 1.75:1 (waste:mill feed) strip
ratio providing a 1.8 Mtpa ("million tonnes per year") mill
throughput producing an average of 25,423 tonnes REO annually over
a 16 year mine life. A Phase 1 initial pit strip ratio of 0.63:1
(waste:mill feed) would yield rapid access to higher grade surface
mineralization in year 1 and payback of $440
million initial capital within 5 years.
About Defense Metals
Corp.
Defense Metals Corp. is a company focused on the development of
its 100% owned Wicheeda Rare Earth Element mineral deposit, located
near Prince George, British
Columbia, Canada, that contains metals and elements commonly
used in in green energy, aerospace, automotive and defense
technologies. Rare earth elements are especially important in the
production of magnets used in wind turbines and in permanent magnet
motors for electric vehicles. Defense Metals Corp. trades in
Canada under the symbol "DEFN" on
the TSX Venture Exchange, in the United
States, under "DFMTF" on the OTCQB and in Germany on the Frankfurt Exchange under
"35D".
For further information, please
contact:
Todd Hanas, Bluesky Corporate
Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: todd@blueskycorp.ca
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Cautionary Statement Regarding
"Forward-Looking" Information
This news release contains "forward–looking information or
statements" within the meaning of applicable securities laws, which
may include, without limitation, statements relating to advancing
the Wicheeda REE Project, the continuing hydrometallurgical test
work and planned hydrometallurgical pilot plant testing, completing
the planned PFS, the Company's plans for its Wicheeda REE Project,
the expected results and outcomes, the technical, financial and
business prospects of the Company, its project and other matters.
All statements in this news release, other than statements of
historical facts, that address events or developments that the
Company expects to occur, are forward-looking statements. Although
the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in the forward-looking
statements. Such statements and information are based on numerous
assumptions regarding present and future business strategies and
the environment in which the Company will operate in the future,
including the price of rare earth elements, the anticipated costs
and expenditures, the ability to achieve its goals, that general
business and economic conditions will not change in a material
adverse manner, that financing will be available if and when needed
and on reasonable terms. Such forward-looking information reflects
the Company's views with respect to future events and is subject to
risks, uncertainties and assumptions, including the risks and
uncertainties relating to the interpretation of exploration and
metallurgy results, risks related to the inherent uncertainty of
exploration and cost estimates, the potential for unexpected costs
and expenses and those other risks filed under the Company's
profile on SEDAR at www.sedar.com. While such estimates and
assumptions are considered reasonable by the management of the
Company, they are inherently subject to significant business,
economic, competitive and regulatory uncertainties and risks.
Factors that could cause actual results to differ materially from
those in forward looking statements include, but are not limited
to, continued availability of capital and financing and general
economic, market or business conditions, adverse weather and
climate conditions, failure to maintain or obtain all necessary
government permits, approvals and authorizations, failure to
maintain community acceptance (including First Nations),
risks relating to unanticipated operational difficulties
(including failure of equipment or processes to operate in
accordance with specifications or expectations, cost escalation,
unavailability of personnel, materials and equipment, government
action or delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), risks relating
to inaccurate geological, metallurgical and engineering
assumptions, decrease in the price of rare earth elements, the
impact of Covid-19 or other viruses and diseases on the Company's
ability to operate, an inability to predict and counteract the
effects of COVID-19 on the business of the Company, including but
not limited to, the effects of COVID-19 on the price of
commodities, capital market conditions, restriction on labour and
international travel and supply chains, loss of key employees,
consultants, or directors, increase in costs, delayed drilling
results, litigation, and failure of counterparties to perform their
contractual obligations. The Company does not undertake to update
forward–looking statements or forward–looking information, except
as required by law.
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